"While we were not able to match last year's record first quarter earnings results, I am pleased with the trajectory of our productivity and expense control initiatives. We continue to see benefits in the areas of dock productivity and maintenance expenditures, while maintaining service and advancing quality initiatives. We also reduced purchased transportation expense, which represented 4.3% of revenue compared to 6.0% of revenue in the first quarter last year," said Saia President and Chief Executive Officer, Rick O'Dell.

"Despite no noticeable improvement in the level of general economic activity, we secured average rate increases of 5.3% on contractual renewals in the period," O'Dell added.

Financial Position and Capital ExpendituresTotal debt was $116.4 million at March 31, 2016 and inclusive of the cash on-hand, net debt to total capital was 20.9%. Due primarily to the timing of capital expenditures and seasonality factors, this represents an increase to the total debt of $69.0 million and net debt to total capital of 13.9% at December 31, 2015.

Net capital expenditures in the first quarter of 2016 were $63.7 million including equipment acquired with capital leases. This compares to $33.2 million of net capital expenditures in the first quarter of 2015. The Company currently plans net capital expenditures in 2016 of approximately $140 million.

Conference CallManagement will hold a conference call to discuss quarterly results today at 10:00 a.m. Eastern Time. To participate in the call, please dial 888-876-9177 or 785-424-1666 referencing conference ID #8234961. Callers should dial in five to ten minutes in advance of the conference call. This call will be webcast live via the Company web site at www.saiacorp.com. A replay of the call will be offered two hours after the completion of the call through June 22, 2016 at 1:00 p.m. Eastern Time. The replay will be available by dialing 1-888-203-1112 or 719-457-0820.

The Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand the future prospects of a company and make informed investment decisions. This news release contains these types of statements, which are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.

Words such as "anticipate," "estimate," "expect," "project," "intend," "may," "plan," "predict," "believe," "should" and similar words or expressions are intended to identify forward-looking statements. Investors should not place undue reliance on forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements reflect the present expectation of future events of our management as of the date of this news release and are subject to a number of important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those described in any forward-looking statements. These factors, risks, assumptions and uncertainties include, but are not limited to, (1) general economic conditions including downturns in the business cycle; (2) effectiveness of Company-specific performance improvement initiatives, including management of the cost structure to match shifts in customer volume levels; (3) the creditworthiness of our customers and their ability to pay for services; (4) failure to achieve acquisition synergies; (5) failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses, including their goodwill; (6) economic declines in the geographic regions or industries in which our customers operate; (7) competitive initiatives and pricing pressures, including in connection with fuel surcharge; (8) loss of significant customers; (9) the Company's need for capital and uncertainty of the credit markets; (10) the possibility of defaults under the Company's debt agreements (including violation of financial covenants); (11) possible issuance of equity which would dilute stock ownership; (12) integration risks; (13) the effect of litigation including class action lawsuits; (14) cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment and other assets; (15) governmental regulations, including but not limited to Hours of Service, engine emissions, the "Compliance, Safety, Accountability" (CSA) initiative, compliance with legislation requiring companies to evaluate their internal control over financial reporting, Homeland Security, environmental regulations and the Food and Drug Administration; (16) changes in interpretation of accounting principles; (17) dependence on key employees; (18) inclement weather; (19) labor relations, including the adverse impact should a portion of the Company's workforce become unionized; (20) terrorism risks; (21) self-insurance claims and other expense volatility; (22) cost and availability of insurance coverage; (23) increased costs of healthcare and prescription drugs, including as a result of healthcare reform legislation; (24) social media risks; (25) cyber security risk; (25) and other financial, operational and legal risks and uncertainties detailed from time to time in the Company's SEC filings. As a result of these and other factors, no assurance can be given as to our future results and achievements. A forward looking statement is neither a prediction nor a guarantee of future events or circumstances and those future events or circumstances may not occur.

Saia, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

March 31,
2016

December 31,
2015

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

238

$

124

Accounts receivable, net

137,607

124,222

Prepaid expenses and other

37,590

34,643

Total current assets

175,435

158,989

PROPERTY AND EQUIPMENT:

Cost

1,056,435

995,514

Less: accumulated depreciation

467,212

456,335

Net property and equipment

589,223

539,179

OTHER ASSETS

31,047

31,025

Total assets

$

795,705

$

729,193

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

59,723

$

54,754

Wages and employees' benefits

30,423

27,834

Other current liabilities

46,700

46,360

Current portion of long-term debt

13,659

12,432

Total current liabilities

150,505

141,380

OTHER LIABILITIES:

Long-term debt, less current portion

102,780

56,540

Deferred income taxes

69,078

67,417

Claims, insurance and other

34,574

35,967

Total other liabilities

206,432

159,924

STOCKHOLDERS' EQUITY:

Common stock

25

25

Additional paid-in capital

231,114

230,593

Deferred compensation trust

(3,319

)

(3,102

)

Retained earnings

210,948

200,373

Total stockholders' equity

438,768

427,889

Total liabilities and stockholders' equity

$

795,705

$

729,193

Saia, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Quarters Ended March 31, 2016 and 2015

(Amounts in thousands, except per share data)

(Unaudited)

First Quarters

2016

2015

OPERATING REVENUE

$

289,911

$

293,022

OPERATING EXPENSES:

Salaries, wages and employees' benefits

170,266

157,729

Purchased transportation

12,467

17,714

Fuel, operating expenses and supplies

54,040

67,145

Operating taxes and licenses

10,040

9,096

Claims and insurance

8,081

4,837

Depreciation and amortization

17,243

15,199

Operating loss, net

190

69

Total operating expenses

272,327

271,789

OPERATING INCOME

17,584

21,233

NONOPERATING EXPENSES (INCOME):

Interest expense

963

1,019

Other, net

(7

)

(51

)

Nonoperating expenses, net

956

968

INCOME BEFORE INCOME TAXES

16,628

20,265

Income tax expense

6,053

7,660

NET INCOME

$

10,575

$

12,605

Average common shares outstanding - basic

24,998

24,803

Average common shares outstanding - diluted

25,445

25,513

Basic earnings per share

$

0.42

$

0.51

Diluted earnings per share

$

0.42

$

0.49

Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the Quarters Ended March 31, 2016 and 2015

(Amounts in thousands)

(Unaudited)

Quarters

2016

2015

OPERATING ACTIVITIES:

Net cash provided by operating activities

$

16,306

$

26,160

Net cash provided by operating activities

16,306

26,160

INVESTING ACTIVITIES:

Acquisition of business, net of cash received

-

(23,080

)

Acquisition of property and equipment

(53,995

)

(30,064

)

Proceeds from disposal of property and equipment

367

294

Net cash used in investing activities

(53,628

)

(52,850

)

FINANCING ACTIVITIES:

Borrowing of revolving credit agreement, net

38,826

21,577

Proceeds from stock option exercises

-

1,842

Other financing activity

(1,390

)

(900

)

Net cash provided by financing activities

37,436

22,519

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

114

(4,171

)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

124

4,367

CASH AND CASH EQUIVALENTS, END OF PERIOD

$

238

$

196

NON-CASH ITEMS:

Acquisition of property and equipment financed with capital leases

$

10,032

$

3,471

Saia, Inc. and Subsidiaries

Financial Information

For the Quarters Ended March 31, 2016 and 2015

(Unaudited)

First Quarters

First Quarters

%

Amount/Workday

%

2016

2015

Change

2016

2015

Change

Workdays

64

63

Operating ratio

93.9

%

92.8

%

Tonnage (1)

LTL

868

884

(1.8

)

13.56

14.04

(3.4

)

TL

168

188

(10.6

)

2.62

2.98

(12.0

)

Shipments (1)

LTL

1,553

1,542

0.7

24.26

24.47

(0.8

)

TL

24

27

(9.9

)

0.38

0.42

(11.3

)

Revenue/cwt. (2)

LTL

$

15.49

$

15.17

2.1

TL

$

5.64

$

5.89

(4.3

)

Revenue/shipment (2)

LTL

$

173.20

$

174.12

(0.5

)

TL

$

786.24

$

828.54

(5.1

)

Pounds/shipment

LTL

1,118

1,147

(2.6

)

TL

13,942

14,061

(0.8

)

Length of Haul

781

773

1.0

(1)

In thousands

(2)

Revenue does not include the adjustment required for financial statement purposes in accordance with the Company's revenue recognition policy and other revenue.